The Coase theorem states that ?

A. public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good
B. under certain conditions, private parties can arrive at the efficient solution without government involvement
C. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
D. if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced

Related Mcqs:

According to Coase’s theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?
A. population growth leads to rigid land rights
B. participants will organize their transactions
C. violence displacement erosion and poverty are minimized
D. individuals overuse of the biosphere is curtailed
According to the Coase theorem, private parties can solve the problem of externalities if ?
A. there are no transaction costs.
B. each affected party has equal power in the negotiations.
C. the party affected by the externality has the initial property right to be left alone.
D. There are a large number of affected parties.
E. the government requires them to negotiate with each other
The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
A. tastes
B. technology
C. factor/resource
D. opportunity cost
Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A
According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
A. abundant
B. scarce
C. neither
D. can’t tell without more information
Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?
A. free-trade area
B. customs union
C. common market
D. monetary union
A child in the United States is normally exposed to all of the following values EXCEPT ?
A. achievement ans success
B. activity and involvement
C. material comfort
D. collectivism
It is fact that there are 24 million left-handed people in the United States however most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this is group Therefore, this groups fails in one of the requirements for effective segmentation Which of the following is most likely to apply in this case ?
A. actionable
B. substantial
C. differentiable
D. measurable
Catalog marketing is big business in the United States. The average house hold receives __________ catalogs per year?
A. 25
B. 50
C. 75
D. 100
The first modern environmental movement in the United States began in the ?
A. 1940s
B. 1950s
C. 1960s and 1970s
D. mid-1980s